Mexico: Remittances continue to moderate
February 1, 2012
In December, remittances from workers abroad totalled USD 1.8 billion, which was broadly unchanged from the previous month's figure and a notch below market expectations that had remittances rising to USD 1.9 billion. The reading marked a 3.5% increase over the same month the year before, which was less than half the 8.9% rise observed in November. Owing to the subdued print, the trend has begun to point downwards, with remittances adding USD 22.7 billion in the last 12 months, which marks a 6.9% increase over the same period last year (November: +7.3% year-on-year). Remittances represent a significant source of income for many Mexican families, as well as being the second most important source of foreign currency after oil exports. Consequently, a moderation in remittances does not bode well for a recovery in private consumption.